Tag Archive for 'condo prices'

Deutsche Bank Says: “Affordability Is Key”

Published
by
Editor
on May 26, 2009
in Market Conditions
. 27 Comments

Here we are at the end of May, enjoying one of the biggest slumps in housing since the Depression. Hope everybody had a great weekend!

Among the blooming flowers and singing birds have been the last gasp of heavy layoffs and an expected drop in home values, but Torsten Slok from New York City’s Deutsche Bank is saying the drop has “improved affordability and…is key to the housing market’s recovery.”

As my angry old neighbor tells me weekly, “common sense is universal.” Let’s follow his lead and start smiling about this increasingly afforable market. Heck, in my neck of the woods, rent has dropped to the point where Manhattan is…affordable! That’s right: those of us who are still employed can actually live remotely close to where we work! Huzzah!

Similarly, reasonably priced condos are abound. Combined with low interest rates and a decent credit score, those among the employed can enjoy the kind of bargains that might just bring us back to normal by next spring.

Patience, Grasshopper.

In Some Areas, Condos Gain on Single Families

Published
by
preynolds
on April 21, 2009
in Market Conditions and Progressive Trends
. 296 Comments

Is the American ideal of the single-family home going the way of trans-fat, plastic bags and the Hummer?

In New England at least, something seems to be driving up the value of condos relative to that of single-family homes. So far this year, the median single-family home price in Massachusetts is about $34,000 more than the median condo price, according to the Warren Group, which specializes in analyzing market data in Massachusetts, Rhode Island and Connecticut. Compare that to 2005 when the median price for a single-family home was $72,000 more than a condo.

The data involves just a few recent years, is highly local and still pretty sketchy, but if this really IS a trend, why is it happening?

Certainly New England is different from other areas of the country, like Florida, where speculative condos flooded the market before everything crashed. In New England things have been more restrained. Speculative building was held in check by the area’s topography, geography and zoning laws. But what else? Here are a few guesses:

  • As more first-time buyers enter the market, they buy lower-cost condos first, boosting prices of condos relative to that of single-family homes.
  • In the Boston area, foreclosures seem to be concentrated in outlying suburban areas with more single-family homes. Alternatively, dense and fashionable urban areas located close to universities and public transportation —areas usually consisting of condos — have retained value and experienced fewer foreclosures, keeping prices higher.

But does the New England experience suggest anything about the future of condos in general?

Maybe. A growing senior population in the market for a maintenance-free life, may eventually boost condo sales and prices relative to single-family homes across the country. A growing immigrant population used to tighter living quarters, urban life, and multi-family dwellings, may also boost demand for condos. Certainly young professionals may prefer condos in the city if they can avoid a long commute.

What’s happening with condos in your neck of the woods? Could the condominium replace the single-family home as the housing option of choice?